ACI to diversify into aviation business, invest in digital bank

Advanced Chemical Industries (ACI), one of the leading conglomerates in Bangladesh, has decided to diversify into aviation business by forming a subsidiary company, according to the company's board meeting held on Wednesday.
The company will also invest Tk 100 million in the upcoming digital bank named Kori Digital PLC.
ACI Avionics and Airlines Services Ltd, the subsidiary company, will have an authorised capital of Tk 500 million and a paid-up capital of Tk 10 million. ACI will have a 77 per cent stake in the subsidiary.
The investment in the upcoming digital bank is subject to the approval from the concerned authorities, said the company.
ACI is the latest listed company that has decided to invest in digital banks after two firms -- Bank Asia and Crystal Insurance -- announced their plans to invest in the digital bank recently.
Digital Bank, also known as Neobank or virtual bank, operates exclusively online without traditional physical branch networks.
The Bangladesh Bank last month invited applications from entrepreneurs interested in establishing digital banks.
The central bank, in its guideline, said that investors willing to set up a digital bank must have a minimum paid-up capital of Tk 1.25 billion and this capital must come from the sponsors.
The central bank will accept applications until August 1 this year.
ACI is a multinational conglomerate with a diversified portfolio of businesses. The company operates through four strategic business units: chemicals, pharmaceuticals, consumer products and engineering.
Listed in 1976, is one of the largest listed companies in Bangladesh. It operates in diversified areas, ranging from agribusiness to retail chain shops and from consumer goods to pharmaceuticals.
ACI's consumer brands sell items in various categories, including toiletries, home care, hygiene products, electrical and electronics goods, mobile devices, salt, flour, foods, rice, tea, edible oil and paints.
ACI Agribusinesses is the largest integrator in Bangladesh, while ACI Retail Chain operates the largest network of super-shops with 144 Shwapno outlets across the country.
The company also has a presence in the pharmaceuticals segment, offering a range of hygiene products from sanitisers to hand wash and soaps.
In January-March of this year, ACI witnessed a 42 per cent lower profit year-on-year, amounting to Tk 80 million, due to currency devaluation, hikes in energy prices and higher import costs.
Since November last year, the company's stock price has remained stuck at the floor at Tk 260.20.

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